• About   |
  • Write For Us   |
  • Contact Us   |
  • हिंदी
Friday, July 1, 2022
  • Login
  • Register
No Result
View All Result
The Second Angle
NEWSLETTER
  • Opinion
  • TSA Analysis
  • Explainers
  • Politics
  • Culture
  • People
  • Education
  • Healthcare
  • Environment
  • Technology
  • World
The Second Angle
  • Opinion
  • TSA Analysis
  • Explainers
  • Politics
  • Culture
  • People
  • Education
  • Healthcare
  • Environment
  • Technology
  • World
Home Economy

American Child Tax Credit

The Child Tax Credit has been renewed under American Rescue Plan Act of 2021.

Guest Writer by Guest Writer
July 22, 2021 - Updated on March 16, 2022
in Economy
Reading Time: 2 mins read
A A
American Child Tax Credit
Share on FacebookShare on WhatsApp

WHAT IS IT?

It is a tax benefit given to American taxpayers for each dependent child who is either a U.S. citizen, or U.S national, or U.S. resident, to support their families. It is estimated that this credit will help to reduce children living in poverty by 45%.

BENEFITS OF AMERICAN CHILD CREDIT

Tax Credit for 2020 is an income tax credit of up to $2000, that is, ₹1,49,506 per eligible child, under the age of 17 and it may be partially refundable.

RelatedPosts

Want To Learn How to Read Your Credit Card Statement?

Want To Learn How to Read Your Credit Card Statement?

May 24, 2022
QR Code: Convenient and safe mode of digital payments

QR Code: Convenient and safe mode of digital payments

May 23, 2022
American Child Tax Credit
image source: reuters

It has been increased to $3600, that is, ₹2,96,121 for each eligible child under the age of 6 or $3000, that is, ₹2,24,267 for each eligible child under the age of 18 for 2021 credit, which is fully refundable. It was implemented on July 15, 2021, and was distributed to all eligible taxpayers. It will be continued every month.

FOR 2020

Eligible taxpayers can claim a tax credit of $2,000 per dependent child under age 17. If the amount of the credit exceeds the tax owed, then the taxpayer generally is qualified for a refund of the excess credit amount up to $1,400 per child.

American Child Tax Credit
image source: usatoday

The additional child tax credit, that is the refundable amount, was designed to help taxpayers whose tax liabilities were too low to benefit from the credit.

FOR 2021

For 2021, the credit increases, and the age for a qualifying child are extended to 17.

ADVERTISEMENT
American Child Tax Credit
image source: curich

The credit amount rises to $3,000 for children under age 18 or $3,600 for children younger than 6 and becomes fully refundable to the extent it exceeds the taxes owed.

HOW IT’S DONE

While preparing for their tax returns in 2020, taxpayers should have calculated and compared the amounts of the child tax credit based on their incomes for both the 2019 and 2020 years to determine which year provides a greater benefit. Additional Child Tax Credit, that is, the refundable amount of the 2020 credit, considers the taxpayer’s annual income. Because of the pandemic, many citizens had lower earnings in 2020 than in 2019, so this rule allows taxpayers to calculate the amount of their credit for 2020 based on their earnings for 2019.

But for 2021, taxpayers whose direct deposit information is with the IRS, Internal Revenue Service, are eligible for the credit. They have already received advance payment in their bank accounts on 15 July through the electronic deposit.

Also Read: PM Modi’s Mann Ki Baat 90 per cent fall in revenue in the last three years

Author

  • Child Tax Credit
    Guest Writer

    View all posts

ShareSendTweet

Subscribe to our Push Notifications to get the news delivered to you directly before anyone else.

Unsubscribe
Guest Writer

Guest Writer

Related Posts

Want To Learn How to Read Your Credit Card Statement?
Business

Want To Learn How to Read Your Credit Card Statement?

May 24, 2022

A credit card statement can be defined as a document that provides a comprehensive summary of how the credit card...

Read more
QR Code: Convenient and safe mode of digital payments
Economy

QR Code: Convenient and safe mode of digital payments

May 23, 2022

In the retail world, QR codes may be utilized in various techniques. QR Codes may help merchants engage with e-commerce...

Read more
Child Tax Credit
Explainers

The Rupee Hit An All-Time Low Against The US Dollar | How Does It Impact You? | Is It A Bad Thing?

May 12, 2022

The rupee fell 51 paise to an all-time low of 77.41, breaking the previous low of 76.98 set in March.

Read more
What is Supply Shock Inflation, and Why Should you Care About it?
Explainers

What is Supply Shock Inflation, and Why Should you Care About it?

May 6, 2022

The rising inflation is a result of too many supply chain disruptions over the last two years, caused first by...

Read more
CRYPTO Getting Affected Due to Russia vs Ukraine War talks
Economy

CRYPTO Getting Affected Due to Russia vs Ukraine War talks

April 30, 2022

While the war between Russia and Ukraine is bringing the whole world's economy down, the future currencies are also facing...

Read more
Child Tax Credit
Economy

Price rises and inflation in India: What to expect in the future months, from food products to edible oil rates?

April 14, 2022

While oil marketing organizations have raised the cost of fuel and diesel by roughly Rs 10 per litre in the...

Read more
Load More
Next Post
NASA's Mars Rover, Perseverance to collect the first Martian rock sample

NASA's Mars Rover, Perseverance to collect the first Martian rock sample

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Facebook Twitter Instagram Telegram

About

The Second Angle

A platform providing diverse views on various issues, providing an in-depth understanding of important developments happening around us. It offers you true journalism amidst the cacophony. Discover the latest news, opinions, analysis and a lot more here.

Important Links

  • About
  • Career
  • Write for us | The Second Angle
  • Support Us
  • Privacy Policy
  • Terms
  • Contact Us
  • Newsletter
  • हिंदी

Subscribe to Our Newsletter

We don’t spam! Read our privacy policy for more info.

Check your inbox or spam folder to confirm your subscription.

© 2017-22. The Second Angle. All Rights Reserved.

No Result
View All Result
  • Opinion
  • TSA Analysis
  • Explainers
  • Politics
  • Culture
  • People
  • Education
  • Healthcare
  • Environment
  • Technology
  • World
  • Login
  • Sign Up

© 2017-22. The Second Angle. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.